{"id":245932,"date":"2021-03-22T15:51:55","date_gmt":"2021-03-22T10:21:55","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=245932"},"modified":"2021-07-30T10:05:28","modified_gmt":"2021-07-30T04:35:28","slug":"usa-american-rescue-plan-act-arpa-2021","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/03\/22\/usa-american-rescue-plan-act-arpa-2021\/","title":{"rendered":"USA | American Rescue Plan Act  (ARPA), 2021"},"content":{"rendered":"<p style=\"text-align: justify;\">On 11<sup>th<\/sup> March, 2021, the US President, Joe Biden has signed the American Rescue Plan Act<a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a> (ARPA), 2021. The ARPA Act is a comprehensive 1.9 trillion dollars relief plan that is intended to facilitate the recovery of the country from the impact of the COVID-19 pandemic.<\/p>\n<p style=\"text-align: justify;\">The key employment-specific provisions are discussed below:<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Voluntary Paid Leave Programs:<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li>Extension of limitation on excess business losses of non-corporate taxpayers.<\/li>\n<li>Until September 30, 2021, refundable tax credits may be received by employers who choose to voluntarily provide FFCRA paid sick or paid family leave.<\/li>\n<li>Three additional reasons added for paid leave by the employers: obtaining COVID-19 vaccination; recovering from an injury, disability, illness or condition related to the vaccination or seeking or awaiting the result of a COVID-19 test.<\/li>\n<li>A new anti-discrimination rule has been added that ensures the tax credit available only to those employers who provide leave to all employees without any discriminating against the categories of workers.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Unemployment Benefits<\/strong><\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li>The Act extends unemployment benefits by 300 dollars per week through 6<sup>th<\/sup> September, 2021 and also waives Federal income taxes for the first 10,200 dollars of unemployment benefits received in 2020 for households earning under 1,50,000 dollars.<\/li>\n<li>ARPA makes significant changes to each of the following unemployment insurance programs: Pandemic Emergency Unemployment Compensation; Pandemic Unemployment Assistance; Federal Pandemic Unemployment Compensation and Mixed Earner Unemployment Compensation.<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Nutrition Assistance<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">There is an increase of 15% in the Supplemental Nutrition Assistance Program (&#8220;SNAP&#8221;) benefits, also known as food stamps or Electronic Benefit Transfer (&#8220;EBT&#8221;) benefits, through September 30, 2021.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Housing Aid<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The Act extends 20 billion dollars to state and local governments to help low-income households with rent and utility bill assistance. In addition to this, 10 billion dollars is allocated to help people struggling to pay mortgages and property taxes.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>COBRA Subsidies<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage allows employees to continue to remain covered under their employer\u2019s health insurance for up to 18 months after coverage is lost because of a reduction in work hours or the employee\u2019s involuntary termination of employment.<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000080;\"><strong>Small Business Relief<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\">The Act has allocated 15 billion dollars for targeted Economic Injury Disaster Loan (&#8220;EIDL&#8221;) payments, which provides economic relief to small businesses that experienced loss of revenue due to the pandemic. The Act also extended an additional 7.25 billion dollars for the Paycheck Protection Program&#8217;s (&#8220;PPP&#8221;) forgivable loans. The Act also provides grants to small businesses in sectors hardest hit by the pandemic-related economic slowdown. This includes:<\/p>\n<ul style=\"text-align: justify;\">\n<li>The restaurants, bars and other eligible providers of food and drink have been allocated 28.6 billion dollars through the Restaurant Revitalization Fund.<\/li>\n<li>The airline industry has been allocated with 23 billion dollars.<\/li>\n<li>The shuttered venue operators, such as music venue operators, theatre producers, and other performing arts organizations have been extended 1.25 billion dollars.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">*Tanvi Singh, Editorial Assistant has put this story together. <\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a>https:\/\/www.congress.gov\/bill\/117th-congress\/house-bill\/1319\/text#toc-H33775D8652B642E6A31E4BCAA5C575ED<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 11th March, 2021, the US President, Joe Biden has signed the American Rescue Plan Act[1] (ARPA), 2021. 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